Jan. 1 started the first of a series of incidents both good and bad for Obamacare. I know a few loyal President Obama supporters who are hesitant to admit that this might not serve to be Obama’s finest accomplishment.
Meanwhile, I believe that Congress needs to step up and pass a No Bailout for Insurance Companies Act of 2014. It needs to say “sections 1341 and 1342 of the Affordable Care Act are hereby repealed.”
We need to have them do this because of adverse selection: enrolling too few young and healthy people. This will cause the insurance companies to have financial difficulty. Obama’s plan to deal with this is a government bailout where taxpayers fund the deficit.
Section 1341 is the insurance fund that is collected from insurers and self-insuring employers. Section 1342 is the risk corridors provision that mandates a major taxpayer payout covering up to 80 percent of the insurance companies’ losses.
The whole scheme is to get enough enrollers, 40 percent being young and healthy.
As of Jan. 18 the numbers look like taxpayers get to dig deeper.